This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
3-bedroom, 2-bathroom house of 122 m², built in 1987, energy rating C. Located Lagoa e Carvoeiro parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a private putting green and an interior patio with a built-in barbecue, enhancing both leisure and entertaining options in a tranquil setting. Location: Conveniently situated within walking distance to Vale do Milho golf club and just 5 minutes by car to Carvoeiro, offering easy access to amenities. Verdict: FAIR
The valuation. The asking price of €995,000 exceeds the fair value of €710,275 by €284,725, or 40.1%. This property is categorized as overpriced.
Fair value modelled at €710,275 from 6 comparable sales in the area. Asking €995,000 sits €284,725 (40.1%) above — overpriced versus fair value.
Asking €995,000 versus the Lagoa e Carvoeiro, Lagoa, Faro area baseline of €608,168 (€4,985/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €608,168, adjusted for condition and micro-location, gives a modelled fair value of €710,275 (€5,822/m²), a €284,725 (40.1%) gap versus the €995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Lagoa e Carvoeiro · 4a4457 | Subject | €995,000 | €8,156 | — | 78 | 68 |
| Lagoa e Carvoeiro · 99f399 | Active | €430,000 | €2,756 | 66.2% | 72 | 74 |
| rua do Clube Carvoeiro S / N | Active | €695,000 | €6,376 | 21.8% | 78 | 68 |
| rua do Clube Carvoeiro S / N | Active | €695,000 | €6,376 | 21.8% | 75 | 72 |
| Lagoa e Carvoeiro · b32753 | Active | €400,000 | €4,444 | 45.5% | 74 | 73 |
| Median comp | €562,500 | €5,410 | 33.7% | 75 | 73 |
Short-term vacation rental The property, with a fair value of €710,275, is listed at €995,000, creating a substantial gap of 40.1% that indicates it is overpriced for the short-term vacation rental market. With a gross yield of only 3.3%, the potential returns may not justify the elevated purchase price in the highly competitive coastal Algarve area. Buy-and-hold Investing in this property as a buy-and-hold strategy is not recommended due to its significant overpricing relative to its fair value of €710,275, leaving a 40.1% disparity. The property’s yield of 3.3% does not provide an attractive long-term investment opportunity in a tourism-driven economy. Long-term rental While long-term rental could be a feasible strategy in the coastal Algarve region, the property is overpriced at €995,000 compared to its fair value of €710,275, indicating a 40.1% gap. The yield of 3.3% does not present a compelling case for long-term investment under current market conditions. Not ideal for: Student housing, Luxury market, Industrial property This property is not suitable for student housing, luxury markets, or industrial property investments, as its pricing and market conditions do not align with these strategies. The neighbourhood dimensions and tourist-driven economy of the Algarve further reinforce this conclusion.
Potential for Economic Downturn The scores indicate a moderate economic stability at 60/100, suggesting a vulnerability to market fluctuations that could negatively impact tenant retention and rental income.
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